New project launches decline by over 50%

HT Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent

New launches de­clined by over 50% in the first quar­ter of t his year (Jan­uary to March 2015) against a back­ground of l ess t han ex­pected sales in the res­i­den­tial sec­tor this year, says a new re­port by real es­tate con­sul­tancy Cush­man & Wake­field.

The pe­riod saw the low­est num­ber of project launches over a pe­riod of two years. With a to­tal of 24,700 units launched this quar­ter, the decline was recorded to be over 50% year– on–year (y-o-y) over the same time last year. This is be­cause de­vel­op­ers are hold­ing back on new launches and fo­cussing on com­plet­ing ex­ist­ing projects, the re­port says.

Among new unit launches dur­ing the first quar­ter, only the high-end seg­ment reg­is­tered a y-o-y growth of 26%. Af­ford­able hous­ing seg­ment re­duced sig­nif­i­cantly by over 80%. Mid-seg­ment hous­ing re­duced by 63%. It was seen that de­vel­op­ers are in­clined to­wards the high-end seg­ment where profit mar­gins are typ­i­cally high and builders are look­ing at off­set­ting in­creas­ing land and devel­op­ment costs.

Ben­galuru wit­nessed a y-o-y decline of 76% in unit launches with nearly 4,100 units launched in the first quar­ter of this year com­pared to 16,800 units in the same quar­ter last year. Kolkata wit­nessed a decline of 67% and Mumbai 63%. Delhi NCR saw unit launches de­clin­ing by 58%.

There has also been a re­duc­tion in the av­er­age num­ber of units per project which has de­clined from 287 units in the first quar­ter last year to 233 units per project this year. The av­er­age num­ber of units per project was high­est (669) in Hy­der­abad, fol­lowed by 567 in Mumbai. In other three cities, namely, Delhi-NCR, Kolkata and Pune, com­par­a­tively smaller projects with lesser num­ber of units were launched in the first quar­ter this year. The num­ber of units launched per project fur­ther de­creased in this quar­ter, as de­vel­op­ers launched smaller projects with lower in­vest­ments.

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